Jurisdiction(s):
United Kingdom

Restricted Securities Elections under ITEPA 2003 ss 425(3), 430 and 431 (UK): Joint Election Requirements, 14-day Deadline, HMRC-approved Forms and Required Information

Published by a LexisNexis Share Incentives expert

Practice notes

The procedure for making joint restricted securities elections is the same regardless of whether the election is made under sections 425(3), 430 or 431 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003).

For an election to take effect, it must satisfy all of the following:

Be executed by both the employee (or director or other office-holder) and the employer. Note: it is the employer, not the company issuing or transferring the employment-related securities (if different), that must enter into the election with the employee.
Use an approved form (see below).
Be completed within 14 days of:
- the acquisition (for elections under ITEPA 2003, s 425(3) or s 431), or
- the chargeable event (for an election under ITEPA 2003, s 430).

The 14-day limit is absolute; extensions are not available. HMRC’s guidance indicates that where the acquisition or chargeable event occurs on day one, the election must be signed before midnight at the close of day 15. The time limit cannot be extended, though altering a restriction may open a window to make a s 430 election under ITEPA 2003, in...

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Dan Sharman

Shoosmiths

• Dan specialises in advising on all types of employee incentive arrangements, ranging from share options, share ownership (particularly growth shares), cash-based schemes and employee benefit trusts.• In addition to handling share options work, he also advises clients on all areas of employment tax, including employment related securities, internationally mobile employees and the tax efficient structuring of bonuses and termination payments.• Dan is dual qualified as both a solicitor and a chartered tax adviser....

Web page updated on 21/05/2026

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